Trade-Ideas LLC identified

Supernus Pharmaceuticals

(

SUPN

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Supernus Pharmaceuticals as such a stock due to the following factors:

  • SUPN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.5 million.
  • SUPN has traded 138,898 shares today.
  • SUPN is trading at 2.78 times the normal volume for the stock at this time of day.
  • SUPN is trading at a new high 4.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on SUPN:

Supernus Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of products for the treatment of central nervous system diseases in the United States. SUPN has a PE ratio of 52. Currently there are 7 analysts that rate Supernus Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Supernus Pharmaceuticals has been 832,600 shares per day over the past 30 days. Supernus has a market cap of $726.5 million and is part of the health care sector and drugs industry. The stock has a beta of 1.12 and a short float of 9.5% with 2.97 days to cover. Shares are up 13.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Supernus Pharmaceuticals as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 2.7%. Since the same quarter one year prior, revenues rose by 38.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SUPN's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SUPN has a quick ratio of 1.57, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 40.00% and other important driving factors, this stock has surged by 53.23% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Pharmaceuticals industry and the overall market, SUPERNUS PHARMACEUTICALS INC's return on equity is below that of both the industry average and the S&P 500.

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